Economic Overview

• GDP (2024): Approximately $675 billion.
• GDP Per Capita: About $73,000, significantly above the national average.
• Rank: 11th largest economy in the U.S.
• Economic Diversity: New Jersey's economy is characterized by high sectoral diversity, mitigating risks during economic downturns.

Employment

• Unemployment Rate: Approximately 4.1% (mid-2023).
• Total Labor Force: Around 4.6 million.
• Job Growth Rate: Projected at 1.2% annually through 2025.
• Sector Employment Distribution:
  • Health Care and Social Assistance: 13.6% of total employment.
  • Retail Trade: 10.5%.
  • Professional, Scientific, and Technical Services: 10.2%.
  • Construction: 6.3%.
  • Education Services: 6.0%.
• Labor Force Participation Rate: Approximately 63%, showing strong workforce engagement.
• Minimum Wage: As of 2024, the minimum wage is set to increase to $15 per hour, reflecting efforts to improve living standards.
• Unionization Rate: Approximately 16% of workers are union members, influencing labor policies and wages.

Key Industries and Contributions

Pharmaceuticals:

• Revenue: Approximately $46 billion.
• R&D Investment: Roughly $14 billion annually.
• Employment: Over 120,000 jobs in the sector, with a focus on innovation and drug development.
• Global Headquarters: Major companies like Johnson & Johnson and Merck are based here, driving economic growth.

Finance and Insurance:

• Revenue: About $64 billion.
• Total Employment: Approximately 300,000 jobs.
• Key Players: Prudential Financial, Citigroup, and various regional banks, contributing to a robust financial services cluster.
• Fintech Growth: Increasing number of fintech startups, with New Jersey being a growing hub for innovation in financial technology.

Manufacturing:

• Revenue: About $55 billion.
• Major Sectors: Pharmaceuticals, food processing, machinery, and chemicals.
• Total Employment: Approximately 250,000 jobs.
• Focus on Advanced Manufacturing: Adoption of automation and smart manufacturing practices to enhance productivity.

Information Technology:

• Growth Rate: Expected to grow by 4% annually.
• Number of Tech Firms: Over 8,000.
• Venture Capital Investment: Substantial investment in biotech, cybersecurity, and fintech startups, with several incubators and accelerators supporting growth.

Trade and Exports

Overview

• Total Exports (2021): Approximately $42 billion.
• Major Export Categories:
  • Pharmaceuticals: $27 billion (approximately 64% of total exports).
  • Machinery: $5 billion.
  • Electrical machinery: $3 billion.
  • Chemical products: $2 billion.
  • Transportation equipment: $1.5 billion.

Key Trading Partners

• Top Export Destinations:
  • Canada: Largest trading partner, receiving around $12 billion in exports.
  • Mexico: Approximately $6 billion.
  • China: About $4 billion.
  • Germany: Roughly $3 billion.
  • United Kingdom: Approximately $2.5 billion.

Import Activity

• Total Imports (2021): Approximately $69 billion.
• Major Import Categories:
  • Electronics and electrical equipment: $15 billion.
  • Machinery: $12 billion.
  • Mineral fuels and oils: $10 billion.
  • Pharmaceuticals: $8 billion.
  • Vehicles and automotive parts: $6 billion.

Port of New Jersey and New York

• Significance: One of the busiest ports in the U.S., crucial for both imports and exports.
• Container Traffic: Handles millions of TEUs (Twenty-foot Equivalent Units) annually, serving as a primary gateway for international trade.
• Logistics and Distribution: The port’s strategic location allows for efficient distribution to major markets in the Northeast and beyond.

Trade Infrastructure

• Transportation Networks: Extensive road, rail, and air transport networks facilitate trade.
• Logistics Hubs: Numerous logistics and distribution centers located throughout the state enhance trade operations.

Trade Policy and Initiatives

• State Trade Programs: New Jersey promotes international trade through initiatives that help local businesses access global markets.
• Economic Development: Focus on attracting foreign direct investment (FDI), promoting New Jersey as a prime location for international businesses.

Economic Impact of Trade

• Job Creation: International trade supports hundreds of thousands of jobs across various sectors.
• Contribution to GDP: Trade activities significantly contribute to New Jersey's GDP.

Challenges

• Trade Disruptions: Challenges related to global supply chain disruptions and trade policies can impact export levels.
• Competition: Increased competition from other states and countries in attracting international business.

Taxation

• State Income Tax Rates:
  • Lowest: 1.4% (up to $20,000).
  • Highest: 10.75% (over $5 million).
• Sales Tax Rate: 6.625% (additional local taxes may apply).
• Corporate Tax Rate: Varies from 9% to 11.5% based on income levels.
• Property Tax: Among the highest in the nation, averaging $8,500 per year for homeowners.
• Tax Incentives: Programs such as the Grow New Jersey Assistance program provide incentives for businesses to invest in the state.

Cost of Living

• Cost of Living Index: About 28% higher than the national average.
• Housing Costs: Median home price around $400,000, with significant variations by region.
• Utilities: Among the highest in the nation, particularly for electricity and water.
• Transportation Costs: High commuting costs, especially for those traveling to New York City, with public transit options being a key factor in urban areas.

Education and Workforce

• Percentage of Adults with Bachelor’s Degree: About 41%, reflecting a highly educated workforce.
• Top Fields of Study: Business (25%), Health (20%), Engineering (10%).
• Public Education Spending: New Jersey spends about $20,000 per pupil, among the highest in the U.S.
• Community Colleges: Strong community college system providing vocational training and higher education, supporting workforce development.
• Workforce Training Programs: Initiatives aimed at reskilling workers for emerging industries, particularly in tech and green jobs.

Recent Economic Developments

• Renewable Energy Investment: $250 million committed to solar projects, aiming for 100% clean energy by 2035.
• Startup Ecosystem: Over 600 tech startups reported, with significant growth in biotechnology and fintech.
• Infrastructure Projects: Over $1 billion invested in transportation upgrades, including roads, bridges, and rail improvements.
• Workforce Development Programs: Increased funding for training in high-demand fields, particularly in healthcare, IT, and manufacturing.
• Innovation Hubs: Initiatives to support innovation and entrepreneurship, particularly in technology and life sciences.

Key Administrative Organizations in New Jersey

1. Governor’s Office

• Function: The Governor leads the executive branch, shapes state policy, and manages state operations.
• Current Governor: John Mcain (Democrat, since January 2018).
• Statistics:
  • Approval Rating: As of late 2023, approximately 50% of New Jersey voters approve of the Governor's performance.
  • Executive Orders: The Governor has issued over 50 executive orders since taking office, addressing issues such as public health and economic recovery.

2. Department of Education

• Function: Oversees K-12 education, establishes educational standards, and manages funding.
• Key Components:
  • Office of the Commissioner: Responsible for statewide educational policy implementation.
  • Division of Early Childhood Education: Focuses on preschool programs.
• Statistics:
  • Student Enrollment: Approximately 1.4 million students enrolled in public K-12 schools (2023).
  • Budget: The total education budget for FY 2024 is about $18 billion, with about 45% allocated to K-12 education.
  • Graduation Rate: The high school graduation rate stands at 90.6% (2023).

3. Department of Health

• Function: Ensures public health, manages healthcare services, and responds to health emergencies.
• Key Components:
  • Division of Public Health: Manages disease prevention and health promotion.
  • Bureau of Vital Statistics: Maintains records of births, deaths, and marriages.
• Statistics:
  • COVID-19 Response: Over 22 million COVID-19 vaccine doses administered statewide by 2023.
  • Public Health Funding: The Department's budget for FY 2024 is approximately $1.2 billion.
  • Health Outcomes: Life expectancy in New Jersey is about 80.6 years (2023).

4. Department of Transportation (NJDOT)

• Function: Develops and maintains the state’s transportation infrastructure.
• Key Components:
  • Division of Engineering: Manages construction and maintenance of roads and bridges.
  • Office of Transit: Oversees public transit systems.
• Statistics:
  • Roads and Highways: New Jersey has over 39,000 miles of roads.
  • Annual Budget: The transportation budget for FY 2024 is approximately $2.2 billion.
  • Bridge Condition: Approximately 23% of the state's bridges are considered structurally deficient.

5. Department of Environmental Protection (DEP)

• Function: Protects natural resources, enforces environmental laws, and promotes sustainability.
• Key Components:
  • Division of Land Use Regulation: Manages land use and permits.
  • Bureau of Climate Resilience: Develops climate action plans.
• Statistics:
  • Protected Land: Approximately 1.2 million acres of state land are protected.
  • Environmental Budget: The DEP's budget for FY 2024 is around $400 million.
  • Renewable Energy Goals: New Jersey aims for 50% of energy from renewable sources by 2030.

6. Department of Labor and Workforce Development

• Function: Enhances workforce skills, enforces labor laws, and provides unemployment services.
• Key Components:
  • Division of Employment Services: Connects job seekers with employers.
  • Office of Workforce Development: Implements job training programs.
• Statistics:
  • Unemployment Rate: As of August 2023, the unemployment rate is 4.1%.
  • Job Training: Over 45,000 individuals participated in training programs funded by the department in 2022.
  • Minimum Wage: As of 2024, New Jersey's minimum wage is set to increase to $15 per hour.

7. Department of Human Services

• Function: Provides social services, mental health support, and assistance programs.
• Key Components:
  • Division of Family Development: Administers welfare and support programs.
  • Division of Mental Health and Addiction Services: Provides mental health resources.
• Statistics:
  • SNAP Participants: Approximately 1.1 million residents receive SNAP benefits.
  • Mental Health Services: Over 300,000 residents utilized mental health services in 2022.
  • Total Budget: The Department’s budget for FY 2024 is about $4.3 billion.

8. Department of Community Affairs (DCA)

• Function: Oversees housing, local government support, and community development.
• Key Components:
  • Division of Housing and Community Resources: Manages affordable housing initiatives.
  • Office of Code Enforcement: Enforces building codes.
• Statistics:
  • Affordable Housing: Approximately 40,000 units of affordable housing funded in 2022.
  • Local Government Support: The DCA provides technical assistance to over 560 municipalities.
  • Community Development: Managed over $200 million in community development block grants in 2023.

9. Department of State

• Function: Manages elections, cultural affairs, and state records.
• Key Components:
  • Division of Elections: Oversees the electoral process and voter registration.
  • Division of Cultural Affairs: Promotes arts and history initiatives.
• Statistics:
  • Voter Registration: Over 6 million registered voters in New Jersey (2023).
  • Election Budget: The election administration budget is approximately $20 million for FY 2024.
  • Cultural Grants: Distributed over $10 million in grants to arts organizations in 2023.

10. Department of Treasury

• Function: Manages state finances, including budgeting and taxation.
• Key Components:
  • Division of Taxation: Administers tax collection and compliance.
  • Office of Management and Budget: Prepares the state budget.
• Statistics:
  • Annual Budget: New Jersey's total budget for FY 2024 is approximately $52.4 billion.
  • Tax Revenue: Estimated tax revenue for FY 2024 is around $36 billion.
  • Pension Fund: The state’s pension fund is valued at approximately $100 billion.

11. New Jersey State Police

• Function: Provides law enforcement and public safety services across the state.
• Key Components:
  • Uniformed Services: Patrols highways and provides emergency response.
  • Investigative Services Bureau: Handles major criminal investigations.
• Statistics:
  • Trooper Count: Approximately 2,500 troopers serving the state.
  • Crime Rate: New Jersey’s crime rate has decreased by 30% over the past decade.
  • Community Engagement: Over 200 community programs aimed at building relationships between police and communities.

Recent Initiatives Across Departments

• Renewable Energy Projects: The state is advancing its clean energy goals with significant investments in solar and wind energy projects.
• Workforce Development: Ongoing training programs are focused on high-demand sectors, including technology and healthcare, in response to changing job market needs.

Misc.

Governor Building (Trenton)

New Jersey Coat of Arms